Peter Leeds is a prominent penny stock investor. Yes, you read that correctly. That’s a way different approach to penny stocks than most day traders, and the SteadyTrade crew wants to know all about his process!
What’s the difference between a trader and an investor? Intention and duration.
As longtime SteadyTrade listeners know, most penny stocks eventually fail. That’s why many day traders merely use them as vehicles to ride brief spikes rather than investing in the long term.
In this episode, you’ll learn all about how Peter approaches penny stocks, including his extensive research process, his objectives, and how he developed his strategy. Prepare yourself for a whole new point of view on penny stocks!
About Peter Leeds
Peter isn’t just some dude. He’s earned his chops in the market. He’s written for Forbes, About.com, and Investopedia. Peter’s also built a popular YouTube channel and has been featured on all sorts of media outlets.
Oh, and he’s penned several books, including the international bestseller, “Penny Stocks for Dummies.”
Believe it or not … Peter started trading penny stocks when he was 14 years old. He saved up money doing “a lot of stupid jobs” like pulling weeds, moving rocks … He figured there had to be a better way.
What does a kid with an inkling toward the market but not too much money gravitate toward? Penny stocks, naturally!
At the tender age of 14, he put his entire savings — $3,600 — into a single company. It got halted … and he lost all of his money.
This put Peter at a crossroads. He could either tuck his tail between his legs and fade into the background … or figure out a better way.
He chose the latter. Don’t miss the incredible story of how a young Peter Leeds looked at what he did wrong, continued to improve, and figured out a strategy that worked for him.
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Peter Leeds on the War on Penny Stocks
A lot of people hate penny stocks … For the most part, it’s warranted. The niche tends to draw degenerates with $500 accounts. Too many traders aren’t willing to invest time in learning how to trade and just “throw stuff at the wall,” according to SteadyTrade co-host Tim Bohen.
How Peter’s Trading and Investing Now
According to Peter, no matter how you approach penny stocks — as a trader, or as an investor — you’ve got to adapt. Given the current market volatility, it’s more important than ever.
While he’s “into technology,” he’s been changing it up recently. Gold has become an area of interest, as well as options. Peter also talks about what sectors or types of stocks he’s avoiding right now … Don’t miss this vital information.
Peter’s Criteria: What Makes a Good Purchase?
Want to know how Peter Leeds finds a diamond in the rough?
First, you gotta be honest with yourself. Are you looking for a lottery ticket, or are you looking for growth?
For him, companies that have just a few employees, a good idea, and enough financial stability to “make it through the turbulence until they get to cruising altitude” are ideal. But how does he find them?
Peter explains his personal process for finding stocks to invest in. Fundamentals account for about 80% of his analysis. Technicals and “third-level analysis” that’s unique to his company account for the rest.
Why so much research? Remember: Peter invests in these stocks, so his trades are generally long term.
However, like day trading, it’s highly speculative. Experience and knowledge are necessary if you want to find consistency.
What It Really Takes to Find Consistency
In the episode, Peter discusses some key things that traders and investors alike need to figure out if they want to be in it for the long haul, including:
- Are you passionate enough about this to make it work?
- How to figure out your risk tolerance.
- How to determine and evaluate your goals … it’s about more than just making money.
- The effects of trading on your life … it can really change you for the better!
To close out the episode, Peter offers up the top questions new traders should ask themselves … Don’t miss his responses, and learn why Stephen says as soon as he becomes a millionaire, he wants to get drunk with Peter/.
Connect With Peter
LinkedIn: Peter Leeds
Buy Peter’s Books:
What Did You Think?
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